The bill amends existing legislation concerning tax credits and employment incentives for businesses in New Jersey, requiring those awarded tax credits to submit an annual certificate of compliance to confirm the retention of full-time jobs as outlined in their project agreements. If a business fails to maintain the required number of jobs, their tax credits will be proportionately reduced. The bill also allows businesses to waive the requirement for full-time employees to spend at least 60% of their time at the business facility, reducing it to 40% under specific conditions, including a two-year extension of their project location commitment and a non-refundable payment to support small business initiatives. Additionally, it introduces provisions for businesses outside enhanced areas to waive the same employee time requirement starting April 1, 2024, and enables the transfer of tax credits to other entities with tax liabilities.

Moreover, the bill revises eligibility criteria for tax credits related to capital investments, maintaining a minimum investment of $50 million and the employment of at least 250 full-time employees, while clarifying that businesses cannot receive tax credits if they are already benefiting from other employment incentive agreements. It also stipulates that the New Jersey Economic Development Authority must verify claims regarding job transfers to prevent misrepresentation of job creation. The legislation emphasizes maintaining employment levels and provides mechanisms for businesses to adjust their obligations in light of economic challenges, while also establishing a framework for the authority to manage capital investments and distribute funds to support local economic activities.

Statutes affected:
Introduced: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247
Advance Law: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247
Pamphlet Law: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247